Placing A TRADE
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Thread: Placing A TRADE

  1. #1
    What are the items that one must look out for before placing a trade. If the market is moving up, what's causing it to move up and if downwards, why can it be, and hw will you know that in the event you enter, the market won't proceed against you.

  2. #2
    Quote Originally Posted by ;
    Thanks you. Truly this is a wonderful family. Let me answer the previous post, I beg to be confused if I replied it simply to test my mind and also see if I am really ching up with my learning. I believe the issue of where to set the stop loss must do with amount you're prepared to risk. Therefore it ought to be calculated on the basis of risk /reward ratio of 1 to 3, that is for every 30$ profit goal, you set your stop loss at 10$. Can someone please inform me if I am right.
    Does your current egy or trade choice on this trade permit for a 3 risk reward then if this is the case, you're on the right track, like I risk just 0.5% on my private account and on my institutional money, never any more than that. So if the balance is my risk on the SL being hit will be $250. Doesn't make any difference if the sl size is 5 pips or 500 pips, I fix lot amount to coincide with my risk based on the size of sl in pips.

    Example on a $50,000 with eurusd.

    In case sl size is 25 pips my lot size is going to be 1.00 lot.
    In case sl size is 250pips my lot size is going to be 0.10 lot.
    If sl size is 165 pips my lot size is going to be 0.15 lot.

  3. #3
    Yea, I am just about to start demo trading

  4. #4
    Quote Originally Posted by ;
    yea, I am just about to begin demo trading
    Can you have a tested plan? If you trade with no odds are that you are going to develop poor trading habits.

  5. #5
    Still in the basic phases of the development. However, I will be pleased to get suggestions for how best to develop a good trading plan. I am aware that it is crucial to trading success, therefore any good advice will be valued As a newbie, I will rely on you senior forumites to be successful.

  6. #6
    Quote Originally Posted by ;
    still in the elementary phases of the development. But, I will be glad to find suggestions for the best way best to develop a fantastic trading plan. I know it's important to trading success, therefore any fantastic information will be valued As a newbie, I will depend on you mature forumites to be successful.
    I'm just going to copy a post I did on a different thread to provide you with some tips and tricks.

    Don't trade without a proper plan. If there are doubts you shouldn't be trading. In case you haven't tested it you shouldn't be trading, not in demonion as you will gain bad habits.
    Don't take anything you read here at face value. There are some stone but there's a lot of shit too.
    When you have a egy examine it on historic data for at least 100 trades per egy per pair per time frame each time slot (aka time which you'll be trading at example: during the London session or simply from 3pm to 5pm).
    If you want to use somebody else their egy examine it for yourself.
    Don't rely too thick on indiors initially since indiors are futile without understanding how to examine price action.
    Once you tested a egy make sure you trade it for a significant quantity of time in a demo account first so you know you may execute it properly and iron out any doubts so you get confidence.
    When you move live do not start with all your cash. Start small and add up to a reward for sticking to a plan that you know that works out of your testing and demonion trading.
    Your plan should guide you trough every transaction for example: When price action does so, I do so. Whether this indior lines up using support/resistance then I input here and put my ceases here and targets there. There should be no actual thinking out of your side when you have a fantastic plan aside from studying price action/indiors.
    Don't take a risk per transaction aka 1 percent per transaction but look in the maximum drawdown before a new high and calculate the percent of maximum risk you want to choose according to that.
    Don't focus on the cash but focus on the process.
    Log all your trades.
    Master the fundamentals before trying to move on.
    Make sure you know the terminology.
    Make sure you have a method of canceling orders in the event of a power outage or something like that.
    Last but not as long as you do not give up you have a chance of getting there.

  7. #7
    Quote Originally Posted by ;
    still in the basic phases of the development.
    //--

    hello wealthy.... You have been a member for 4 decades and in the basic stages.... I deeply admire your honesty.... It's taken me 12 years to get to the second tier....

    Funny thing is, most people around here consider themselves experts in 5 trades or one day that ever comes first.... And at 10 trades their unbearable.... Ok, maybe it's not so amusing....

    //------

    3 items I'd look for, that can be equally important to me personally, before entering a trade are,

    1. The daily trend as defined by moving averages.... Like the tsr(20) , tsr(30) or some amount....

    2. The amount of days the trend has been in existence.... In other words, how many days has the tsr(30) been red or green....

    3. The length and direction of the current zigzag(12) leg.... Once it reaches it's average span monitoring stops come to mind....

    After that's established, I will go down to the 240 chart and also do exactly the same thing....

    Entrance's are created with 60, 30 or 15 minute charts using trailing buystop or sellstop orders.... Which would be counter tops trending the lower tf's but just in the direction of the daily trend or 240 trend.... Stay on your feet if your using the 240 and it does not agree with the daily.... Far greater risk.... Recent instance here, http://www.earnforex.com/forum/threa...4/#post-109233....

    Fwiw, until you truly understand what your doing, resist the urge to trade contrary to the 1440 and 240 charts.... And exchange the smallest lot size available.... My rule of thumb is that a lot size of 1/20,000 the account size.... Like a 200$ account maximum lot size would be 0.01 ... 1000$ account max lot 0.05.... And so on....

    There is absolutely no point in larger sizes until you are comfortable.... best of luck...h

  8. #8
    Quote Originally Posted by ;
    quote //-- hello rich.... You've been a member for 4 decades and still in the basic stages.... I deeply admire your honesty.... It's taken me 12 years to get into the next tier.... Funny thing is, most folks around here consider themselves experts in 5 transactions or 1 day which ever comes first.... And at 10 transactions their unbearable.... Ok, perhaps it's not so amusing... //------ 3 things I'd look for, which are equally important to me, before entering a trade are. The daily trend as characterized by moving averages.... Such as the tsr(20)...
    great share! Thanks

  9. #9
    Hello, Hayseed, im really encouraged by your articles. The truth is I've come to understand that hype or pride leads nowhere in the forex market. I've been around for about four decades, but because I was in a haste, I hurried into opening a ljve account and in a few days, I withdrew my account. I found that the person that claimed to be my coach didn't even know how the market functions. I realised that there's no substitute to learning the trade.

    I prefer to start small now and reach the top, than start from the top down.

  10. #10
    Quote Originally Posted by ;
    What are the things that you must look out for before placing a transaction. If the market is going upward, what is causing it to move up and when downwards, why can it be so, and hw will you know that if you enter, the market won't move against you.
    That is the $64 question. If you figure out that, you've just cornered the market.

    To answer your question right, within the market there are spaces between spaces, areas between areas and therefore prices between prices. It's the stuff that you don't see on a simple chart that provides the technical foundation for that which causes the market to move upward and downwards. It's sort of like the Universe. The visible thing is 1% and the remaining 99% is currently classified as largely dark matter - invisible. Yet, it is the dark matter that holds the observable thing together.

    Any time period you use has an Open, High, Low and Close. In and of themselves they provide very little info. But when aggregated across a series of OHLC, each of those four (4) data points suddenly presents the dark thing that can be measured, analyzed, studied, interpreted and demoned to possess repeating, consistent and reliable patterns of price behavior. It's the effective study of the relationships between these historic price points that contribute to the discovery of usable patterns for the purposes of trading the markets (any market) accurately and with a high level of confidence.

    Price isn't a singular data point. Price is an ever evolving structural pattern of data points. It's the pattern itself that empowers predictability. This is the point where the high probability emerges as well as the high degree of confidence upon entrance. There are a myriad of those structural price patterns not yet been discovered. Meaning that there are an abundant number of approaches to exchange the market successfully.

    As a result, the reply to your question is from the discovery of a structural price pattern constituted of historic data points represented by means of a data collection taken OHLC data points and across the time period that was necessary to discover the pattern.

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